City Council Workshop - June 16, 2026

The City Council Workshop for the City of Kerrville held on June 16, 2026, focused extensively on the fiscal year 2027 budget, particularly the water enterprise fund. City officials presented detailed budget projections, highlighting a $130,000 deficit with revenues of $18.2 million against $18.3 million in expenses, reflecting a 4.3% increase aligned with inflation. Key procurement-related discussions included capital improvement projects (CIP) with $15 million in infrastructure needs over five years, ongoing debt service obligations, and asset replacement plans involving vehicles and equipment. The council reviewed proposed water, sewer, and reclaimed water rate increases—5% for water base rates and 7% for sewer—to address budget gaps and maintain fund sustainability. They also discussed potential adjustments to the KPUB franchise fee as a future revenue source. The workshop included a review of operational costs, personnel expenses, and sustainability measures, with an emphasis on balancing customer impact and financial health. The council provided consensus to proceed with background work on the KPUB franchise fee and to consider moderate increases in upper-tier water rates. No formal votes were recorded, but clear direction was given for staff to develop scenarios and return with refined budget proposals at the next meeting.